PRESIDENT BUSH: I want to welcome Prime Minister Ariel Sharon back
to the Oval Office. We've just had a really good conversation about
how to get on the path to peace. I want peace; our government wants
peace; the Prime Minister is interested in peace, of course. And we
had a good discussion about how to move forward.

One of the things that I think is important -- the Prime Minister
has discussed this, as well -- is for us to immediately begin to help
rebuild a security force in Palestine that will fight terror, that will
bring some stability to the region. I think it's very important that
there be a unified security force; that, at the same time, we need to
work for other institutions -- a constitution, for example, a
framework for development of a state that can help bring security and
hope to the Palestinian people and the Israelis.

And one of the things we've got to make sure that we do is
anything, any vision understands that there are people in Israel who
long for security and peace, people in the Palestinian world who long
for security, peace and economic hope.

To this end, I've told the Prime Minister that George Tenet will be
going back to the region to help construct the -- design the
construction of a security force, a unified security force, that will
be transparent, held accountable.

And so I really am pleased with our conversation. As I've said,
there are responsibilities to be had by all the parties. We discussed
those responsibilities. I told the Prime Minister there's nothing more
I want than to be peace in the region, and that I look forward to
working with him and his government to achieve that peace.

Mr. Prime Minister, welcome. I'm glad you're here.

PRIME MINISTER SHARON: Thanks so much. I'm very glad to have this
opportunity to come again here to visit you, Mr. President. I would
like to thank you for all your efforts. And we need to act against
terror worldwide. We appreciated that. And we appreciate your
leadership and courageous decisions. And, of course, I would like to
thank you for your friendship.

Israel is a peace-seeking country, and we are, after many, many
years being involved in many wars, heavy battles, and now after the
last operation that we carried out against the infrastructure of terror
in Somalia and Judea -- or as you call it, the West Bank -- I
believe that there is a chance now to start and move forward.

We discussed these issues, how to move forward. We emphasized
about the need for reform in the Palestinian Authority, and I think
that's very important. And we discussed the original peace conference
that I advocated, and I believe it's very important. We hope that it
will take place.

Altogether, all of us understand the importance of peace, the need
for peace. And I think that we are committed to take every effort and
every step to make peace.

And I would like to thank you again for everything, and for your
friendship.

PRESIDENT BUSH: Thank you, sir.

Fournier, AP.

Q If you could, first of all, further define what you mean by
"unified" -- if you could, first of all, identify what you mean by
"unified structure." And secondly, more broadly to both of you, your
administration is on record as supporting accelerated peace talks,
dealing with Yasser Arafat, and making Saudi Arabia a key partner.
Prime Minister Sharon favors incremental steps, taking Arafat out of
the process, and he's provided you evidence suggesting that the Saudis
encouraged Palestinian attacks. Have you bridged any of those gaps,
the two of you?

PRESIDENT BUSH: Well, "unified" means that as opposed to six,
seven, or eight different security forces under six, seven or eight
different commands, there's one command structure. That's what that
means.

Q Palestinian?

PRESIDENT BUSH: Yes, Palestinian, exactly.

In terms of the other issues, we discussed a wide range of issues.
One of the things that should becoming apparent to people is that we're
in consultation with not only the Israelis, but other governments --
I talked to Crown Prince Abdallah today, as well as President Mubarak
-- about how best to proceed toward a common vision.

You just heard the Prime Minister talk about the desire for peace.
We had the Saudi Crown Prince stand up and talk about peace and the
need for a peaceful solution. And it's very important for us to seize
this moment, as the Prime Minister mentioned, and lead and get on that
path. And that's exactly what we've talked about.

And I want to reiterate what I've said and will continue to say --
there are responsibilities. If people truly want there to be peace,
people have the assume their responsibilities for peace. And the
Saudis must do that, and they're willing to do that. The Crown Prince,
again, and I talked, and I made it clear to him that we've got to fight
terror in the region for there to be peace, and that he and the other
leaders must work and must convince the Palestinian Authority that they
have got to do everything in their power to lead toward a solution.

At the same time, I emphasized what Ariel has just mentioned, that
we must provide a framework for growth of a potential Palestinian
state. There's got to be the framework for education and health and
economic development, as well as security. And all parties have got
responsibilities in the region to see -- to do their part.

Q Mr. President -- sorry.

PRESIDENT BUSH: I can't see you. You're blocking her view.

Q You've said many times that one should not compromise with
terrorism. You said many times that you are disappointed from Yasser
Arafat on the issue of terrorism. Do you think that Israel should
compromise and negotiate with Chairman Arafat?

PRESIDENT BUSH: I'm never going to tell my friend, the Prime
Minister, what to do on how to handle his business. That's his choice
to make. He's a democratically elected official. And I'll reiterate;
I have been disappointed in Chairman Arafat. I think he's let the
Palestinian people down. I think he's had an opportunity to lead to
peace and he hasn't done so. And that's why it's important for all of
us to work out a way to develop the institutions necessary for there to
be a Palestinian Authority that's got the capacity to keep security,
but, as well as a Palestinian Authority that's got the ability to help
promote hope for the future of her people -- that there's an
education system that works, a health system that's vibrant.

And by the way, there's plenty of nations that are willing to
participate, so long as those -- the framework for a stable part of
the world is in place. And those are the reforms that the Prime
Minister has talked about, and those are the reforms that we must
press.

I will give you one example. The Palestinians need to develop a
constitution, rule of law, transparency. They've got to have a
treasury that is able to battle corruption, so that not only does the
-- do the Israeli people have confidence in the Authority, but so do
the Palestinian people have confidence in the Authority. And those are
the reforms we've discussed.

Q Mr. Prime Minister, the last time -- (laughter) -- the
last time you met President Bush, you accepted the idea of a
Palestinian state at the end of the peace process. Do you still
support the establishment of a state?

And, Mr. President, do you believe that a state should be a stated
goal of a peace process?

PRESIDENT BUSH: Yes. I haven't changed my position.

PRIME MINISTER SHARON: I think that it's still premature to
discuss this issue. I think what we have to concentrate now is making
every effort that real reform will take place. And we discussed, I
would say, how really to reach these reform, what should be there. And
we discussed some other developments like the original peace conference
and other issues.

Q -- reforms must take place before you would consider a
Palestinian state?

PRIME MINISTER SHARON: I think that it's, as I said, it's
premature now. I think, first of all, steps should be taken in order
to establish, or to have real reform in the Palestinian Authority.

Q -- Radio Number One.

PRESIDENT BUSH: How many Radio Number Ones are there? (Laughter.)

Q Mr. President, I wonder if you could tell us -- you've
probably been studying these ideas of reforms in the Palestinian
society. How long do you think, how long do you estimate it will take
the Palestinians to carry out these reforms? And do you have any
reason to believe, or any information that Mr. Arafat will agree for
such reforms? And will Arafat agree actually to lose his power and
give it to somebody else in the Palestinian leadership?

PRESIDENT BUSH: Well, you know, it's interesting, I think the
operative question is, how soon will you start working on reforms.
That's the -- if I could put a question in your own mouth. The
answer is, as soon as possible. That's what we discussed about --
how quickly can we begin the reform process. That's also, is what
we'll with the Arab leaders who have got an interest in the area, about
how to get reforms going.

And I think it's going to be -- and the answer as to whether or
not people will accept the reforms, look, our job is to convince the
Saudis, the Jordanians, the Egyptians that these reforms are absolutely
necessary. And when I say people have got responsibilities, I'm not
just saying the Israelis and the Palestinians have responsibilities.
I'm saying these leaders. And these were -- this is a subject I
discussed with Crown Prince Abdallah of Saudi Arabia. He's the man who
laid out the vision for peace. He's also a man who understands that by
reforming the Palestinians we have a chance to achieve peace.

And so I would hope that all the responsible Palestinian leaders
understand that reform is in their interest. It's in the people's
interest. Listen, I deeply hurt when there is a lack of hope for moms
and dads of anybody -- Palestinian moms and dads -- it bothers me.
It bothers me to think there are some whose children are so hopeless
they're willing to commit suicide.

And so one of the things we've got to work for and one of the
things our nation will work for is reforms coupled with humanitarian
help. Reforms with the chance for there to be economic development, so
people can realize a normal life.

And as to who's going to accept what, we'll find out. But one of
the things that's going to be clear is that the world is rallying
toward these reforms. And that's what our job is to do, is to lead
them to those reforms. It makes a lot of sense. And this is a good
first step toward the path to peace.